WHAT TO WATCH ON THE HILL THIS WEEK: There’s a lot of action on Capitol Hill this week as lawmakers look to consider amendments to a major reauthorization bill, along with a few Republican-led messaging bills heading to the House floor and hearings starring members of President Joe Biden’s cabinet. Here’s a breakdown of what’s happening this week:
FAA Bill: A bipartisan Federal Aviation Administration reauthorization deal is up for an expected vote in the Senate – and there will be plenty of energy and environment-related amendments from senators looking to tack on their legislative priorities to the moving vehicle.
As we’ve reported before, Environment and Public Works Committee Chairman Tom Carper and Ranking Member Shelley Moore Capito have introduced legislation to overhaul regulation of the nuclear industry as an amendment to the FAA bill. But passage of this measure could prove tricky as other lawmakers offer several of their own amendments ahead of a May 10 deadline – which is when the FAA authorization expires.
There are other energy and environment-related amendments that are being offered – including one from GOP Sen. Josh Hawley that would expand compensation for nuclear contamination victims. The Senate is out of session today, but will be in tomorrow – and we’ll keep you updated on amendments as they become available.
Over on the House side: The chamber is considering legislation from Republican Rep. Debbie Lesko that would prohibit the Energy Secretary from issuing any new energy conservation standards that are not “technologically feasible and economically justified.” The bill, dubbed the “Hands Off Our Home Appliances Act,” is meant to block the Biden administration’s efforts to issue new conservation standards for household appliances, such as gas stoves and dishwashers.
The chamber is also looking to bring to the floor a mining bill from GOP Rep. Mark Amodei intended to address a ruling from the Ninth Circuit Court of Appeals and clarify that mining companies can store waste on land regardless if the area has viable minerals underneath.
Both bills are headed to the Rules Committee at 4 p.m. – but keep in mind, the Biden administration has issued a statement of administrative policy opposing the mining bill. And it’s unlikely the Biden administration would undo its own Department of Energy efficiency regulations.
Hearings: Members of the White House’s cabinet will be testifying in the Senate all this week. Interior Secretary Deb Haaland will appear on Wednesday in front of the Senate Appropriations Committee about the president’s budget request for the agency. Haaland had a tense time on Capitol Hill the week before, where she was questioned by Senate Energy and Natural Resources Committee Chairman Joe Manchin on the DOI’s plans to cut back on oil and gas lease sales. Senate Republicans had also grilled Haaland over claims of influence from leftist environmental groups.
Haaland had also testified in front of the House Natural Resources hearing last week, where House Republicans interrogated her over the Biden administration’s oil and gas policies.
Environmental Protection Agency Administrator Michael Regan will be appearing Wednesday before the Senate Environment and Public Works Committee on the EPA’s proposed 2025 budget.
Welcome to Daily on Energy, written by Washington Examiner Energy and Environment writer Nancy Vu (@NancyVu99), with help from policy editor Joseph Lawler. Email nancy.vu@washingtonexaminer dot com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
MICROSOFT SIGNS LARGEST-EVEN CARBON CAPTURE DEAL: Microsoft announced a deal with Swedish energy company Stockholm Exergi to purchase carbon offsets that the two companies are touting as the largest such commitment ever.
Under the deal, announced this morning and subject to final approvals, Stockholm Exergi would provide 3.33 million tonnes of permanent carbon removals, starting in 2028, from a facility in Stockholm. The plant will provide heat and energy by burning biomass. It will capture the carbon dioxide emissions, cool and compress them into liquid form, and then have them transported for burial in sedimentary bedrock under the North Sea. The carbon capture system is slated for construction next year.
Microsoft has announced a number of carbon removal deals in recent months, ESG Today noted, investing in reforestation, direct air capture, and other methods. We noted last week that Frontier, the entity that commits to carbon removal purchases on behalf of major corporations, reached a major deal with the startup Vaunted.
SHELL SOLD MILLIONS OF ‘PHANTOM’ CARBON CREDITS: Shell and the government of Alberta are under fire because the oil major was allowed to claim millions of carbon credits for emissions reductions that didn’t happen, thanks to a government subsidy program.
To boost the industry, the Alberta government allowed Shell to register and sell carbon credits for twice the volume of emissions saved by its Quest facility near Edmonton, the Financial Times reported yesterday. From 2015 to 2021, Shell was able to collect 5.7 million credits that had no equivalent CO2 emissions reductions.
Greenpeace Canada senior energy strategist Keith Stewart called the offsets “phantom credits” and said that their sale “literally makes climate change worse.”
Shell and the government, on the other hand, defended the credits on the grounds that they helped incentivized the creation of the carbon credit market.
Why it matters: The carbon capture industry generally faces skepticism from environmentalists, many of whom argue that offsets can prolong the use of fossil fuels. The sale of credits for emissions reductions that didn’t happen will only add to the resistance.
RUSSIAN SANCTIONS WATCH: Russia’s oil revenue doubled in April from the previous April, to the equivalent of $11.5 billion, according to Bloomberg’s calculations.
The increase was driven in part by higher prices, with a barrel of Urals crude up from roughly $50 last April to more than $70. A weaker ruble also drove sales.
The takeaway: The increase in revenues, which will help fund Russia’s ramp up in military spending to sustain its war in Ukraine, is a sign of the limitations of the sanctions imposed by the U.S. and western allies.
In particular, the figures call into question the efficacy of the G-7-backed price cap of $60 on Russian oil. The key insurance industry organization International Group of P&I Clubs said last month that the price cap is “increasingly unenforceable.”
IN OTHER OIL NEWS…PRICES UP ON RAFAH NEWS: Oil prices rose this morning as Israel warned Palestinians to leave the city of Rafah, indicating that an assault is imminent.
Brent crude was up nearly 1% to above $83 this morning as investors weighed the possibility of increased conflict. Prices had dipped considerably last week as traders priced in less geopolitical risk related to the Middle East.
RUNDOWN
Financial Times The $9tn question: how to pay for the green transition
Wall Street Journal For AI, a Few Seconds of Power Becomes a Booming Business